Nakoda Group of Industries Limited

Consumer Defensive — Packaged Foods · NSE

₹39.49+₹2.79 (+7.60%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

The 60-second version of Nakoda Group of Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nakoda Group of Industries Limited engages in manufacturing, processing, selling, distribution, and trading of tutti frutti, cotton bales, and other agricultural commodities in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees46

Annual revenue₹43 Cr

How does it make money?

Turns over ₹43 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 46 employees supports ₹92.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹92.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -21% while net margin moved +108% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-21%

Margin effect+108%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.2% is weak

Quality vs. Valuation

Company Quality

54/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

42.0x

3Y Median

55.5x

40 monthly readings · mean 55.5x · range 32.8x–93.0x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 24% below its 3y median of 55.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 19% below the peer median of 51.7x.

vs. its own history

Cheap

55.5x median over 40 months · -24%

vs. sector peers

Fair

51.7x median of 4 peers · -19%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.3x

PEG

2.31

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.0% to 11.1% over 3 years.
Debt is being paid down
Total debt is down 41% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 13.8% to 11.5% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 15% against revenue up -21% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 31% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.0% to 11.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 41% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 24% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 15% against revenue up -21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 11.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹69 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.36x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.94

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

11.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

20.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

88.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.1%

Average

Average margins

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

2.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

38.3 / 38.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹54 Cr	₹46 Cr	₹45 Cr	₹43 Cr	-7.4%
EBITDA	₹4 Cr	₹0 Cr	-₹2 Cr	₹5 Cr	+3.3%
EBITDA Margin	8.0%	0.7%	-4.5%	11.1%	—
PAT (Net Profit)	₹1 Cr	-₹2 Cr	-₹4 Cr	₹2 Cr	+18.2%
EPS	₹0.69	₹-1.53	₹-2.51	₹0.88	+8.5%
ROE	5.8%	-10.9%	-13.1%	5.2%	—
ROCE	13.8%	-3.1%	-11.0%	11.5%	—
Total Debt	₹22 Cr	₹18 Cr	₹12 Cr	₹13 Cr	-16.2%
Free Cash Flow	₹3 Cr	-₹0 Cr	-₹4 Cr	₹2 Cr	-19.3%

🔴 Revenue has shrunk at 7.4% a year over 3 years.

🟢 EBITDA has grown at 3.3% a year over 3 years.

🟢 EBITDA Margin has risen from 8.0% to 11.1% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 18.2% a year over 3 years.

🟢 EPS has grown at 8.5% a year over 3 years.

🟡 ROE has held roughly flat at 5.2% over 3 years.

🔴 ROCE has fallen from 13.8% to 11.5% over 3 years (-2.4 pts).

🟢 Total Debt has shrunk at 16.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 19.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹45 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.6%

Corporate Actions

Ex-Dividend Date

21 Sept 2023

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 mixed5 general

Raj Consumer Care (BSE:533093) - Stock Analysis

Simply Wall Street, 15 Oct

Nakoda Group of Industries Ltd is Rated Sell

MarketsMojo, 14 Oct

Nakoda Group of Industries (NGIL.NS) Declines 3.56%, Approaches ₹37.52 Support Amid Downtrend - Call Resistance

siam.in, 01 Sept

Nakoda Group Of Industries Ltd. Upper Circuit: Price and Key Data

Univest, 17 Sept

Nakoda Group of Industries Issues Corrigendum to EGM Notice on May 08, 2026

scanx.trade, 08 May

Nakoda Group of Industries Share Price Target 2027 to 2030: Analyst

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Valuation

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑